When that yearly invoice for membership dues lands on a distributor, manufacturer or rep's desk, a trade association's future is in the balance. The member looks at the invoice and considers whether it is worth it for them to continue their membership. It is this moment where association executives wish they could be mind readers. What is going on in that member's head? What aspects of the association would they consider worthy of their dues, and which would not?

Looking at the future of trade associations, members and association executives know that the associations will continue to be a presence in their respective industries for a long time. As stated, the concern for association management is that they must continue to provide a valuable and active service for their members. With a shaky economical climate, they find that more stress is placed on the association's value to the members. Those members, in looking at their dues invoice, parallel a "What have you done for me lately?" attitude.

"When it comes to reviewing my membership, I consider three reasons behind it," says Jim Beckstein, president of Mill Supplies in Ft. Wayne, Ind., and member of the Industrial Distributors Assn. and the Specialty Tools and Fasteners Distributors Assn. "The value of the conventions, and what we learn through the workshops and such to perform better business; programs available to members, including a lending library in some organizations, article reprints and information on the Web sites; and the affinity programs for purchasing products, that include incentives and some discounts for products."

Trade associations know all this as well, and in making themselves a more valuable resource for their members, strive to be everything to every member: a conduit for education, networking, research, legislative muscle, and growth.

"Members are pressured to be more responsive to their customers, and associations are feeling the direct impact of that," says Joe Thompson, executive vice president of The Assn. for Hose and Accessories Distribution (NAHAD), and executive director of Independent Sealing Distributors and the North American Industrial Representatives Assn. "As do our members, we've had to create more value for our customers with fewer resources."

Creating that value, for most associations, means developing more programs and services for their members, supporting more research that will help members grow their businesses, and, rather simply, telling members why they are useful. A major point for some associations was an increase in communication between member and association.

"The highest-rated benefit of an association is networking," says Mary Sue Lyon, executive vice president of the Power Transmission Distributors Assn. "We continue to offer ways to enhance members' networking. We can never communicate the association's benefits enough. We are developing research on what end-users expect from distributors; end-use sales guides/briefings for members' sales forces; and our technical education committee is rewriting the Power Transmission Handbook. We need to be sure we understand the members' issues, and tell them what their association can do for them."

States Charles Stockinger, executive director of the Industrial Supply Manufacturers Assn., "Looking into 2004, we are figuring out what we can do to help members take advantage of the recovery in the economy and their cost-effective use within the channel…all to ensure their survival in the channel."

And what about these members? Trade associations are doing all they can to keep them happy—and on the dues roster—but are they really giving up their membership cards?

"Over the last couple years, we've lost some, and our retention is down, but that's more due to company mergers, acquisitions and consolidations," says Thompson. "There has been some downturn, but I am seeing a light at the end of the tunnel."

Says Ron Schreibman, senior vice president-strategic direction of the National Assn. of Wholesaler-Distributors, "I think that you'll find a decrease [in memberships] of some kind through every industry and in every trade. The corporate consolidations continue. As companies decline in number, so do memberships."

Membership in PTDA, though, went up by one or two in 2003. "That is delightful news for us," says Lyon. "Despite the economy and declining capital, we still recruited a few more members."

Says Georgia Foley, executive director of STAFDA, "STAFDA has been able to hold its total membership around 2,600 the last three years. Our members recognize the value they receive…for only $350 annual dues…and our dues haven't changed since STAFDA's inception in 1977. We're able to retain members, and attract new ones, because we offer so much for so little."

In reference to their recruitment practices, most associations still depend on their most tried-and-true method, word of mouth. As it is, that is how they got their first members, and how they intend to grow. But in today's climate, all associations agree that one cannot survive on word of mouth alone.

"For the first time, we have hired a full-time membership director," says Rick Doyle, executive director of Gases and Welding Distributors Assn. "That person contacts our existing members in order to promote retention, and is launching and implementing a new-member campaign. We are identifying the distributors in our channel, and will approach them about membership."

Stockinger says that ISMA is developing more programs to bring potential members to association events, but also asks their distributor constituency to identify any suppliers that should be association members.

"Our best leads come from manufacturers," says Thompson, of NAHAD. "But it seems to only work second best in the hierarchy of recruiting. People are always calling to become members. Our membership committee reaches out to a prospect list, and we get contacts from current members. But in the end, associations need to do a better job of marketing themselves."

What could probably be labeled the largest hurdle trade associations have to jump is their members' participation in association events. Another victim of the economy and lower profit margins is the registration numbers for conventions, regional meetings and trade shows.

In looking at an association event coming up on his calendar, Beckstein weighs the value of the programming and what it would be worth to an employee.

"Even in this current economic situation, it will cost about $1,000 per person to go," he says. "If your participation and involvement with the workshops and programming apply, and give you something to take back with you, then that cost will pay dividends towards your expenses."

Foley tries to make STAFDA's services and programs that require member participation as convenient as possible. Everything lands directly on members' desks.

"The highest participation level is attendance for our Annual Convention & Trade Show," she says. "We've consistently attracted more than 4,200 people since 2000…."

As for his two associations, says Thompson, "Participation has been up and down. With ISD, by nature of it being a smaller association, the event attendance also is small. But with NAHAD, participation had grown until 2001, then dipped for a couple years. It picked up again for our Orlando event this year, and we attracted a nice number. It's important to note that manufacturer support and involvement has been steady throughout. The downturn has been among the small- to mid-sized distributors."

In the completely-disregarding-the-trend industry segment, attendance at the PTDA event in New Orleans this past October boasted a 25 percent increase in distributor turnout. "Our program, 'Doing Business in Turbulent Times,' really resonated with the attendees," says Lyon. "But a lot of factors came together for us this year: more companies, more delegates, the location, inexpensive airfare, and a momentum shift for more strategic thinking among members. The year 2000 to 2001 was a time of painful adjustments. This year, members seemed to have decided to accept changes as they came, and start working with them."

Most associations can give a date for the beginning of a participation downturn—Sept. 11, 2001—but mainly attribute the last few years' lower attendance to a lack of spending money. That leaves associations with the added challenge of making their events worth the money members spend.

For Doyle, increasing attendance means starting the marketing process sooner, getting the volunteer leadership to help promote the event, and enhancing the programming.

"We no longer offer a meeting including four speakers in 1 ½ days," says Doyle. "We're now offering 12 speakers within different tracks, and co-locating meetings with other associations' events."

"Within the last three years, time has become extremely valuable to members," says Schriebman. "They must be convinced that this event is worth the money to attend."

As much as can be said about the hard times that have befallen the associations and their members, it is impossible to imagine a future without trade associations.

As a member of two associations, Beckstein foresees the organizations better positioned to be a source for networking, programs and workshops, and help for members.

"There will be dynamic changes in the associations in the future, but mostly in regards to technology in education, training, new product information, etc.," he says. "There perhaps will be fewer, but better, conventions with more content."

"There always will be trade associations," adds Lyon. "But five years from now, I won't project that we'll be bigger, but we will have sustained our numbers."

Most associations do still see themselves as influences within their industries. Like Lyon, they see themselves as not necessarily larger, but in the same position. None foresee the demise of the association.

"Associations always will be needed to represent companies, whether well or struggling, within their industry," says Schreibman. "The basic value of the association will endure."

Stockinger agrees, but does see some advancement for his association.

"ISMA will provide a leadership role in providing a forum for elements in the channel," he says, "supporting and improving movement of products from supplier to the end user."

The same optimism can be found in Foley's view of STAFDA's future.

"As the economy stabilizes, the next few years should provide slow but steady growth for our members. Just as our members' businesses evolve and grow, so will STAFDA."

When asked where he sees associations in five years, Thompson suggests that there will be fewer.

"They will be stronger and fewer," he says. "Associations won't go away, there will be less of them, but they will be stronger, just like any other organization needing to survive in this business."